Howzat? The clamour to legalise sports betting in India

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5 February 2016

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By Sameer Hashmi

Mumbai Business reporter

It is the last over of the cricket match, with India needing 17 go to win against Australia.

In his two-bedroom house situated in central Mumbai, a middle-aged male is viewing the video game, nervously. He's sitting on the edge of his grey colour couch with his mobile phone glued to his right hand.

He has made more than 10 contact the last thirty minutes - not to discuss the match however to keep revising his bet.

Five minutes earlier his money was on Australia, today as the Indian batsman prepares yourself to deal with the last over he's altered his mind.

"I believe India is winning, make the modification," he tells his bookmaker on the phone.

And a few minutes later on his prediction becomes a reality, as India wins the match in a nail-biting finish.

"I have made $200 today," he says with a childish glee.

For more than three decades he's been banking on cricket matches. We can't reveal his name as what he's doing is unlawful in India.

Other than horse racing, sports betting of any kind is not permitted in India. Despite that, unlawful sports betting syndicates prosper in the country.

'Black cash'

According to the Doha-based International Centre for sports betting Security, India's illegal sports betting wagering market is worth some $150bn a year. And much of that sports betting cash is directed towards cricket.

Without any legal opportunity, punters position bets using their phones by making calls to bookies. Gamblers can wager on anything associated to the cricket match, from who is winning to the greatest specific run scorer.
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The majority of these transactions involve so-called "black cash", which is money not declared to the taxman.

The 1867 Public Gambling Act bars any type of gaming in India, but unlike in the US which has a law forbiding web gaming, there is nothing similar here.

And offshore wagering business are utilizing this loophole to tempt Indians. Even though there are no online wagering operators based out of India, a lot people have actually registered accounts with offshore firms.

"Legally you can get away [with this], as the law is unclear for online sports betting," states Mumbai- based legal representative HP Ranina.

But in spite of this, it is "offline gaming", done through telephone call which control the marketplace.

Require legalisation

The clamour to legalise sports betting in cricket has grown after a panel designated by India's Supreme Court proposed the concept, stating it would help clamp down on corruption in the nation's preferred sport.
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The Justice RM Lodha Commission was established to recommend modifications in the functioning of India's cricket regulative body, the Board of Control for Cricket in India (BCCI), after the 2013 Indian Premier League sports betting scandal emerged.
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Two franchises have been banned for two years after some players and team officials were found guilty of repairing parts of the match at the wish of bookmakers.

The panel likewise argues that legalised sports betting will generate tax incomes for the exchequer that could total up to $2bn a year.

Even gamblers feel that legalising sports betting wagering is a move in the right instructions.

"I do not mind paying some cash out my profits, as long as I can gamble publicly," states our cricket bettor.

It would likewise open a big company chance for licensed bookmakers and international online wagering business to set up operations in India.

And it would help limit match fixing in cricket and other sports betting, argue numerous, by assisting make deals associated with gambling more transparent.

"If you work together with wagering business, you will have an extremely effective technique of stamping out match fixing," says George Oborne, who runs a mock wagering website, India Bet.

But numerous likewise believe, that the taxes levied on the bettor and the bookmaker will need to be affordable to make it attractive enough for them to gamble legally.

However, there are limitations.
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"Definitely there will be illegal wagering because (some) individuals would not wish to leave an audit path by getting in the white market," says Mr Oborne.

He includes that people who utilize unaccounted money to position huge bets will never bet legally.

question

For sports betting gambling to be legalised, parliamentary approval will be needed to create a new law, and politically this will be a hard concept to offer.

"Despite the fact that many individuals are associated with some sort of sports betting - it's still a questionable problem for lots of," states our unnamed punter.

And provided that India has a federal structural - each state will need to likewise pass a different law to legalise sports betting in their territory.
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"The process is so long and challenging that it will take years," says Mr Ranina."That's why, we are cynical about this coming true anytime soon."

Yet with the concept having been backed by a main panel for the very first time, a minimum of a debate has actually ignited around a subject - which previously was thought about a taboo.